Morning Update – 16/11/2016 – by Arjun Lakhanpal

Morning all.. Wall St had a solid close as oil had a very strong impact as it rose steeply on hopes a freeze in production can be agreed upon: S&P closed up 0.75%. Asia stocks followed suit with Nikkei closing up 1.1% as oil held gains and a higher USDJPY clearly helping.. US yields are on the rise again as Asia closes… US10yr at 2.24%..USDJPY made a high overnight of 109.38 and we trade right on session highs as I write this. BoJ’s Kuroda: cannot be optimistic about profit prospects for Japanese regional banks in near future due to low interest environment; watching closely as they are important in transmission on monetary policy; the Trump effect still clearly in play. The driving theme in FX markets since the Nov 8 US elections has been USD strength. Key has been the tremendous surge in Treasury yields as the market tries to price in the higher risk of a combined looser fiscal / tighter monetary stance in the US going forward. Copper failed to rally overnight after a 3% fall yesterday and Iron ore was lower. AUD remains offered but still above the 200 day moving average at .7510. This morning we get UK Unemployment data and thats about it.. Good luck..